Despite Growth, Lodging Turns Cautious

Virginia Tech | April 13, 2016

by Daniel Lesser The US lodging market has experienced its 72nd consecutive month of positive albeit decelerating growth in revenue per available room (RevPAR). Modest US job and wage growth as well as strong consumer spending endure, however, during the past several months, fear of a global economic downturn coupled with investor perception that the lodging industry has peaked has for now rendered the sector a dimming star. Hotel investment sales and financings are taking longer to complete as apprehension about achievable debt levels has widened mortgage spreads and lender underwriting has become increasingly rigorous. Additional unce...